Caribbean Export OUTLOOK 2016 - 2017

TRADE & EXPORT HOT SPOTS

a proper Air Transport Framework Agreement that would allow increased direct flights between China and the CARIFORUM region. Greater efficiency by both public and private tourism travel entities must be accomplished. “Chinese tourists will not travel a great distance to the CARIFORUM region unless they feel confident that the trip will be worth it, that their safety will be guaranteed and that sufficient infrastructure will be in place,” John-Williams noted. Moving Forward Companies from countries in the region that do not enjoy special trading or free trade arrangements with China have to pay hefty import and luxury consumption duties and taxes. And although the Chinese government lowered the import duty by 50% on luxury items such as cosmetics, fashion and other beauty products, for many items the cost of exportation remains high. Firms looking to export to China would benefit significantly from a regional push, at both the state and private sector levels, that encourage the export of local goods and services through the pursuit of multilateral agreements. A joint effort by CARIFORUM governments will increase their bargaining power, as opposed to attempting to negotiate on an individual country basis. Each CARIFORUMmember country will have its own unique trading agenda and needs, but moving forward it is important for the region to utilise a collective bargaining strategy as it positions itself for improved trading conditions, especially as it relates to the establishment of a free trade agreement. Ambassador Singh notes there is power in numbers when attempting to penetrate the market and believes that this can be a winning strategy for breaking into the rum industry. “CARIFORUMfirms must take advantage of the vast and lucrative Chinese market, especially in the rum market that is yet to be developed in China. However, with high import duties and competition by other brands, there should be a combined effort by CARICOM countries to mount a joint promotional campaign to bring the

Caribbean’s highly prized rums to the Chinese people,” he said.

One of the main issues that CARIFORUM companies face is the issue of partnership and representation in China to provide a reliable distribution channel for their products. Those who make full use of government investment and export agencies have the benefit of assistance to helpmake the relevant introductions, thereby paving the way for a mutually beneficial business relationship. While John-Williams believes the establishment of trade desks is a great step towards increasing the region’s export output, he prefers the personal touch. “I believe that increased people to people exchanges from an educational, cultural and arts perspective is also very important in trying to establish strong business ties in China. Many CARIFORUMcompanies and entrepreneurs now travel many times a year to China. However, there are still relatively fewCARIFORUMnatives that not only speak fluent Chinese, but have been educated in international politics and diplomacy with a focus onChina. There needs to be a greater interest and support for young people to study abroad in China or to participate in school or sports and cultural exchange programmes.” Cuba, although not a CARIFORUM State, is a Caribbean country that stands out in terms of maximising this type of exchange with China. Cuba is well positioned to not only receive a substantial amount of trade from China upon the thawing of ties with the US, but it will be in a better position to benefit from increasedChinese tourism to the region as it has more Mandarin speakers and natives who have spent a significant amount of time inChina when compared tomost other CARIFORUM countries. If the region is to benefit from increased export trade with China, it must not only present a unified front but also find ways to deepen ties in a tangible way with the global superpower. For the CARIFORUM nations, this will provide a stable foundation formoving forward andmutual prosperity between the region and China.

Mango Media Caribbean is a leading Public Relations company based in Trinidad and Tobago serving clients globally. Their team of writers develop, create and produce copy for magazines, websites and media both traditional and social.

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